Income Taxes	3 Months Ended
Sep. 30, 2017
Income Taxes
Income Taxes	Note 19. Income Taxes The Company uses the liability method to account for income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. Deferred tax expense (benefit) is the result of changes in deferred tax assets and liabilities. The federal, state and local income tax expense for the three months ended September 30, 2017 was $7.4 million compared to an income tax benefit of $12.9 million for the three months ended September 30, 2016. The effective tax rates for the three months ended September 30, 2017 and 2016 were 35.9% and 30.5%, respectively. The effective tax rate for the three months ended September 30, 2017 was higher compared to the three months ended September 30, 2016 primarily due to lower domestic manufacturing deductions relative to expected pre-tax income as well as the impact of excess tax shortfalls related to stock compensation. The Company may recognize the tax benefit from an uncertain tax position claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of September 30, 2017 and June 30, 2017, the Company has total unrecognized tax benefits of $6.0 million and $5.9 million respectively, of which $4.2 million would impact the Company’s effective tax rate if recognized. As a result of the positions taken during the period, the Company has not recorded any interest and penalties for the period ended September 30, 2017 in the statement of operations and no cumulative interest and penalties have been recorded either in the Company’s statement of financial position as of September 30, 2017 and June 30, 2017. The Company will recognize interest accrued on unrecognized tax benefits in interest expense and any related penalties in operating expenses. The cumulative amount of unrecognized tax benefits as of September 30, 2017 includes approximately $3.0 million of state reserves related to the acquisition of KUPI, which are expected to be recognized in Fiscal 2018 due to a lapse of statute of limitations. The Company files income tax returns in the United States federal jurisdiction and various states. The Company’s tax returns for Fiscal Year 2013 and prior generally are no longer subject to review as such years generally are closed. The Company’s Fiscal Year 2016 federal return is currently under examination by the IRS. The Company cannot reasonably predict the outcome of the examination at this time.

Note 19. Income Taxes

The Company uses the liability method to account for income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. Deferred tax expense (benefit) is the result of changes in deferred tax assets and liabilities.

The federal, state and local income tax expense for the three months ended September 30, 2017 was $7.4 million compared to an income tax benefit of $12.9 million for the three months ended September 30, 2016. The effective tax rates for the three months ended September 30, 2017 and 2016 were 35.9% and 30.5%, respectively. The effective tax rate for the three months ended September 30, 2017 was higher compared to the three months ended September 30, 2016 primarily due to lower domestic manufacturing deductions relative to expected pre-tax income as well as the impact of excess tax shortfalls related to stock compensation.

The Company may recognize the tax benefit from an uncertain tax position claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.

As of September 30, 2017 and June 30, 2017, the Company has total unrecognized tax benefits of $6.0 million and $5.9 million respectively, of which $4.2 million would impact the Company’s effective tax rate if recognized. As a result of the positions taken during the period, the Company has not recorded any interest and penalties for the period ended September 30, 2017 in the statement of operations and no cumulative interest and penalties have been recorded either in the Company’s statement of financial position as of September 30, 2017 and June 30, 2017. The Company will recognize interest accrued on unrecognized tax benefits in interest expense and any related penalties in operating expenses. The cumulative amount of unrecognized tax benefits as of September 30, 2017 includes approximately $3.0 million of state reserves related to the acquisition of KUPI, which are expected to be recognized in Fiscal 2018 due to a lapse of statute of limitations.

The Company files income tax returns in the United States federal jurisdiction and various states. The Company’s tax returns for Fiscal Year 2013 and prior generally are no longer subject to review as such years generally are closed. The Company’s Fiscal Year 2016 federal return is currently under examination by the IRS. The Company cannot reasonably predict the outcome of the examination at this time.